I just offered a seller 2 round trip airline tickets to Cancun, Mexico along with an offer that is about 11k less than there asking price. We will see how this works out. If they do accept my offer, I will profit about 150$ monthly from it, and I will also profit from my housing market still going up steadily every year. I think its at about 4%. But you have to remember that the 4% is calculated on top of the $105,000 house. So my initial down payment of 15,000 will be making $4200 yearly off of the property value, and then another 1800 is positive cash flow. If everything works out, i’m looking at making about $6000 a year off of a $15,000 investment. But we will see how this works out.. 
Update
I was close on this one. It was a bidding war between me and the other investor, my bid was actually lower than his, unfortuanly I’m not sure how much lower though. But they where going to accept my offer because they really liked the idea of traveling to Mexico for free. However, at the last minute they received another offer that was for the asking price.
This is my 3rd property in the last 2 months that I got out bidded on. Its not that I’m too slow or I suck at bidding on properties, its that I bid really low and hope the accept my offer. That’s is what real estate is all about, buying low and selling high.
My realtor was laughing his ass off when I told him to offer them plane and hotel tickets to Cancun, haha. But after he heard that they where going to take my lower bid offer, I’m pretty sure that he thinks its a good idea now heh.
If you haven’t noticed its 11:45 pm on a Friday night. I’m fucken tired and still worken, well actually studying SEO more. Ive been working outside all day since 2 pm. Last night was also the 2nd of 2 all nighters that I’ve pulled in the last 4 days. Well I did manage to get 3 hours of sleep, from 11-2. But that still counts as an all nighter for me. Hopefully I can start making some mad money before my body gives out.. hehe
And no.. I’m not going to go and look over my last blog post, so there should be a lot of bad grammar and spelling errors. Im too tired and lazy, im going to go order a pizza and watch tv now heh.
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quite interesting, would really like to see how this works out
I just want to let you know $150 cash flow sucks. Stay the away from this “deal”. go do some reading on c r e o n l i n e.com or d e a l m a k e r s c a f e.com post the details to the pro’s and get there advice before you close on this thing.
Hi Jon,
Nice idea trying to bargain, makes me laugh. Investing in property is very wise, that’s where my dad has made his money.
How are things? I e-mailed you a while ago but no reply. Get in touch when you get a minute bud.
Khalid.
You should offer a bit more money. I’m staying away from houses at the moment as interest rates are going up in the uk and when they go up house prices tend to stagnate or go down. Have you ever considered buying a house at auction?
Good to see khalid is still knocking about above.
Where did I read that you need to underbid 10-15% on 100 houses before you’ll get your first one at the right price point? Buying at least 10% below market value means if you need to turn it around immediately you will generally break even.
Great idea, don’t go overboard with it though.
$1,800 cash flow off of $15,000, taking into account no management, no vacancy ratio = bad deal… Concentrate on apartments, you have one roof, on lawn, one location… Learn what a Cap Rate is, aim for 12-15% on your first deal.
hey, when is that ad thing? summereast.com or something? anyways let me know.
Haha, hey you will get it sooner or later you just have to be patient.
Hey Jon,
most of theses guys woh are commenting don’t know crap about real estate as it looks. keep at it.
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